B.COM Eco-1 (Cost Analysis) MCQ's




Question 31 :
At zero level of output, total cost of a firm is equal to fixed costs.

  1. TRUE
  2. FALSE
  

Question 32 :
Economic cost is equal to explicit cost minus implicit cost.

  1. TRUE
  2. FALSE
  

Question 33 :
Sunk cost are those cost which can be recovered.

  1. TRUE
  2. FALSE
  

Question 34 :
Incremental cost is called as avoidable cost.

  1. TRUE
  2. FALSE
  

Question 35 :
Social cost is included in price.

  1. TRUE
  2. FALSE
  

Question 36 :
Money cost is the payment made for the factors in terms of money.

  1. TRUE
  2. FALSE
  

Question 37 :
Variable cost remain fixed at any level of output in the short run.

  1. TRUE
  2. FALSE
  

Question 38 :
When MC is more than AC, if exerts a downward pull on the AC curve.

  1. TRUE
  2. FALSE
  

Question 39 :
The LAC curve is referred as the envelope curve.

  1. TRUE
  2. FALSE
  

Question 40 :
The LAC curve is less U-shaped.

  1. TRUE
  2. FALSE
  

Question 41 :
Marginal cost is a U-shape curve

  1. TRUE
  2. FALSE
  

Question 42 :
AFC never becomes zero.

  1. TRUE
  2. FALSE
  

Question 43 :
AVC curve is a ‘U’ shape curve.

  1. TRUE
  2. FALSE
  

Question 44 :
When MC and AC are falling, MC curve lies above the AC curve.

  1. TRUE
  2. FALSE
  

Question 45 :
Fixed cost are overhead cost.

  1. TRUE
  2. FALSE
  

Question 46 :
Implicit cost are also called as indirect cost.

  1. TRUE
  2. FALSE
  

Question 47 :
Sunk cost is called as avoidable cost.

  1. TRUE
  2. FALSE
  

Question 48 :
Explicit costs are called as the accounting costs.

  1. TRUE
  2. FALSE
  

Question 49 :
Total cost is summation of AVC and AFC.

  1. TRUE
  2. FALSE
  

Question 50 :
TFC is parallel to X-axis.

  1. TRUE
  2. FALSE
  

Question 51 :
Long-run is a period in which all the inputs become fixed.

  1. TRUE
  2. FALSE
  

Question 52 :
LAC curve is regarded as the long-run planning device

  1. TRUE
  2. FALSE
  

Question 53 :
Fixed cost include cost of raw materials.

  1. TRUE
  2. FALSE
  

Question 54 :
LAC curve is called a planning curve.

  1. TRUE
  2. FALSE
  

Question 55 :
In a short run period, all costs are variable.

  1. TRUE
  2. FALSE
  

Question 56 :
TVC is inverse – S shaped curve

  1. TRUE
  2. FALSE
  

Question 57 :
Internal economies causes LAC curve to rise

  1. TRUE
  2. FALSE
  

Question 58 :
Net diseconomies causes LAC to rise.

  1. TRUE
  2. FALSE
  

Question 59 :
External diseconomies lead LAC curve to shift upwards.

  1. TRUE
  2. FALSE
  

Question 60 :
Learning curve indicate increase in cost of production to the decrease in output.

  1. TRUE
  2. FALSE
  
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